Toys R Us looks set to go into administration within days, as the toy retailer faces a £15m debt.
Last minute discussions with potential buyers fell through last week and it now looks likely that the retailer is set for a collapse.
In a statement earlier this year, the firm said up to 26 UK stores would be facing closure in spring 2018, affecting 800 roles. However, if the retailer fails to find a last minute buyer, 3200 jobs will be at risk.
Toys R Us management met with the Pension Protection Fund (PPF) on Friday (23 February) to update them on the company’s status. The company’s retirement scheme will be handed over to PPF, which could lead to a cut in savers’ benefits.
It is understood that restructuring firm Moorfields has been put on standby to handle the administration process, until Toys R Us’ deadline on Tuesday (27 February).
Toys R Us’ most recent accounts showed that is was operating with a loss of £500,000 on sales of £418m.